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Some business moghuls I knew and projects that stalled due to commission fishing

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Greeting Japanese investors

Of particular interest to our Ministry was S P Tao’s Shanghai Mart which was located in the centre of Shanghai. Tao, whom we called SP, was a long standing friend and principal investor in Sri Lanka. Starting as a supplier to our Food Department in the fifties in his own ships, Tao was the main investor in our World Trade Centre and the Havelock City development which are land marks in the city of Colombo.

Sumi Moonesinghe who as Chairman of the Bank of Ceylon under President Premadasa, undertook the construction of the land mark WTC and BOC headquarters describes Tao in the following way. “This grand old man had lived his life to the fullest, doing what he loved best and being in places he loved, dark times notwithstanding. I felt truly blessed to have known a man of his stature in my life time, a man who was true friend of Sri Lanka, who took a gamble on a war ravaged, under performing country and created wealth and iconic real estate value.”

Tao, who became a close friend of mine, was born in Nanking which had during the second world war, been for a short time the capital of China. It was bombed heavily and had been brutalized by the Japanese who conducted the “rape of Nanking”. He was a convert to Christianity who remained a lifelong believer and adherent of the church unlike many other “Rice Christians” who had been sheltered by the missionaries.

He also acquired a good knowledge of the English language which helped him it n expanding his business contacts. When Singapore was being built by Lee Kuan Yew in the early days he sent for Tao and requested him to invest in the growth of the new city state. Always a man with a great vision as well as a Christian humanitarian, Tao invested in the Marina city project in Singapore which reclaimed land from the sea and built up a whole new complex of hotels, malls, parks and other amenities which added to the success of the “Singapore story”.

President Premadasa instructed his senior official Paskaralingam to fly to Singapore and persuade Tao, who already had links with Sri Lanka, to undertake a similar venture here. Paskaralingam succeeded partly because SP had great admiration for CCS officers with whom he had done business in food supplies and shipping in the early days. He talked of Caspersz, Balasingham and PA Silva who were Food Commissioners with great faith in their integrity and efficiency.

The Paskaralingam mission succeeded and Tao first undertook the building of the WTC and the headquarters of the Bank of Ceylon. As long as efficient Chairmen of the Bank like Sumi Moonesinghe held sway, they supported this project. But with the advent of CBK and MR investors were discouraged by political appointees and SP had to use all his persuasive powers to ensure the completion of the project which even today stands out as a major foreign investment.

S P Tao

Under Premadasa whom Tao admired as an efficient decision maker, he also undertook the major enterprise of building Havelock City which, like the Marina enterprise in Singapore, is a veritable new city complex in the heart of Colombo. Here too he had to confront many bureaucratic hurdles which he patiently endured and overcame. At one stage when local banks got cold feet he invested his own personal funds to keep the building programme on schedule.

Tao and I as Investment Minister got along famously and we were able to push ahead with the Havelock City’s second stage after negotiations with encroachers, including an influential Buddhist priest, were successfully concluded. The Buddhist priest had to be placated with the building of a whole new temple outside the premises at company expense. Always a religious man SP thought it was a good investment and he was right because there were no more delays in the building programme.

I was touched when SP personally invited me to participate in the ground breaking ceremony for the second phase of the project even though by then I had moved to another Ministry. He lived for over a 100 years. On his 100th birthday he invited 100 of his closest friends and relatives for a celebration. I was happy when I was selected by SP to be one of that hundred. He died some time later.

However the Tao family- particularly his daughter Mildred who is a medical specialist and her son-have taken over his mantle and their company Overseas Realty (Ceylon) PLC, remains one of the biggest private enterprises in the country. Today the Colombo skyline which was changed substantially by him stands as a testimony to SP’s contribution to the country that he both loved as well as tended to exasperate him at times.

Dr. Hu

Another major investor whom I helped when he was ready to leave Sri Lanka because of various obstacles put in his way was Dr. Hu who at that time was a manager of China Merchant Corporation. He is today the Chairman of China Harbour Corporation which is one of the biggest companies engaged in shipping and port development in the world. This company is listed in the Hong Kong stock exchange and now manages our Hambantota harbour which is receiving accolades as a well run port quite unlike the Sri Lanka Ports Authority which is riddled with corruption and is a burden to the exchequer.

The Colombo Port which was a model port at the time of independence was “nationalized” by Bandaranaike whose arm was twisted by Philip Gunawardene. After “nationalization” the Port lost its efficiency and shipping business. This paved the way for the rise of Singapore which emerged as an efficient regional port. The superbly managed Singapore port not only took over our business but also helped in stigmatizing Colombo as a strike-prone, corrupt and inefficient port.

But for our strategic location the Colombo port would have been as dead as a dodo. Later Lalith Athulathmudali took over as Minister of Ports under JRJ and developed Colombo as a hub container port which helped us to get back as a successful enterprise. When bulk breaking became profitable due to the growth of economies of Bangladesh, Myanmar and parts of the Indian subcontinent, Colombo was repositoned as a transshipment centre.

However with the return of the People’s Alliance in 1994 the Port became a political football in the game to win Muslim minority party votes in Parliament. Under Minister Ashraff corruption and politically based appointments and over staffing became the hallmark of the Port. UNP regimes followed up on Lalith’s plan to “privatize” two quays while the state Port Authority continues to manage the discharging and loading in the main quay. The results were revealing.

While the two State corporation did half the work in double the time the privatized ventures won international accolades for their efficiency. One of these private operators was Dr. Hu’s company which later took over the management of the Hambantota Port as well, in a joint venture with the local port authority. Had Dr. Hu abandoned investment in this country as he contemplated on his early visits we would have lost one of our biggest foreign investments of recent times.

Yasuo Fukuda

Japan has been a long standing friend and investor in Sri Lanka. Japanese politicians are fond of harking back to JRJ’s generous sentiments at the post war San Francisco conference when Sri Lanka refused to accept reparations from a prostrate post war Japan. Thereby we lost a large plot of land earmarked for us in the heart of Tokyo next to the present US embassy. However it won for us the eternal gratitude of the Japanese people.

I remember Arthur Basnayake, our Ambassador in Tokyo in the late sixties, telling me that he was treated like a family member by the Japanese political elite. The leading political figure at that time Mr. Noda was the President of the Japan- Sri Lanka Friendship Society. I can testify to such close links because Yasuo Fukuda, a son of a Prime Minister and later a Prime Minister himself, became my personal friend. He visited Sri Lanka several times and whenever I visited Japan I invariably met him for a meal and a chat.

When I was Minister of Investment promotion Fukuda personally led the top level Japanese “Zengakuren” or big company heads at our official meetings. The Japanese tycoon who headed the Sri Lanka-Japanese Business Council was invariably a nominee of Fukuda. Now he is in retirement but his son is in active politics and with the Fukuda faction as influential as ever Fukuda Jr. is recognized as a likely future Prime Minister of Japan.

Japanese investments

Japanese companies invested in our ports, telecommunications, transport and energy sectors. Japanese construction companies undertook contracts in the power, airport and energy sectors which were funded under foreign assistance programmes. Their attempts to enter projects entailing digitization, rapid transport and LNG terminals were not successful due to a variety of reasons including lack of political support from Ministers who were comfortable with the Chinese who were more forthcoming with “commissions”.

A particularly attractive Japanese offer which did not see the light of day for whatever reason was the project to set up a terminal for LNG import and distribution. This was to be a mega project which would have solved the energy problem which has constantly bedeviled the country. A feasibility study was undertaken by Mitsubishi Corporation, one of the business giants of Japan, at their own cost. However due to the lethargy and corruption endemic to our energy sector this “state of the art” project which was supported by me and the Japanese Ambassador Suga, was not followed up after I left the Ministry of Investment Promotion.

Japan was willing to fast track a “step loan” for this venture but we had no success. The head of Mitsubishi Corporation at that time was the brother of Prime Minister Shinto Abe who was a good friend of our country. I had several discussions with the younger Abe who was willing to bring in his company as a big time investor to Sri Lanka. Every time an attempt was made to set up a LNG terminal – later attempts were made by Maithripala Sirisena with a South Korean investor and Basil Rajapaksa with an American investor – it was sabotaged by our CEB engineers and trade unions.

The cost and non availability of energy in our country is one of the main reasons why we are woefully short of foreign investment. Unfortunately the political leadership, as I have shown earlier, did not have the courage to go through with the necessary investments and reforms. We have paid the price by being one of the weakest countries in Asia in drawing foreign investments. Communist states like China and Vietnam draw large US investments. Once poor countries like Bangladesh, Nepal and India have also outstripped us.

(Excerpted from vol. 3 of the Sarath Amunugama autobiography)



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Coercive laws recipe for future misrule

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by Jehan Perera

The NPP government is going after powerful figures from the past and present who have engaged in corruption, fraud and criminal activity in a way that no previous government in Sri Lanka has done. Former ministers, politicians and senior state officials are among those facing investigations and legal proceedings. The government has placed before Parliament a document listing 50 cases involving corruption, fraud and other crimes. These include not only financial offences but also cases relating to the Easter Sunday attacks, the killings of Lasantha Wickrematunge and Wasim Thajudeen, the disappearance of Prageeth Ekneligoda and attacks on journalists Keith Noyahr and Upali Tennakoon.

The significance of this effort is that it can demonstrate that nobody is above the law, regardless of political connections or social standing, which will help restore public confidence in institutions that have long been distrusted. It could also recover public resources, improve the investment climate and strengthen the foundations for a more prosperous and just Sri Lanka. When criticised for focusing on the past and not the present, the government position is that these investigations were initiated under earlier governments, particularly between 2015 and 2019, and that it is now allowing investigators to proceed to deal with the backlog without political interference.

But there is an aspect of the government’s approach that is less justifiable. While pursuing past wrongdoing by powerful individuals, it is also advancing a triumvirate of draft laws that could give the state sweeping powers over citizens, organisations and dissent in the present and future. The draft Prevention of Terrorism legislation, the Prevention of Organised Crimes Bill and the NGO Registration and Supervision Bill raise serious questions about the over-centralisation of power. Each of these laws strengthens the powers of the state while weakening the rights and safeguards that protect people from their misuse and thus questions the basic rights of people in democracy where ‘the power of the people is vested in the government’. This is a recipe for future misrule rather than the rule of law. As the well-known saying goes, power corrupts and absolute power corrupts absolutely.

Proposed Laws

The real test of system change, for which the government obtained an overwhelming mandate, requires not only a government willing to hold others accountable, but one prepared to subject itself to the same principles of legality, transparency and restraint. The three proposed laws that are particularly important in this regard are the Protection of the State from Terrorism Bill, the Prevention of Organised Crimes Bill and the NGO Registration and Supervision Bill. Each of these draft laws has been presented as serving a legitimate purpose. Preventing terrorism, combating organised crime and ensuring that NGOs do not facilitate money laundering or terrorist financing are proper responsibilities of the state. Sri Lanka has international obligations in these areas, and no responsible government can disregard them. However, the existence of a legitimate objective does not justify every means adopted to achieve it.

The proposed Protection of the State from Terrorism Bill illustrates the problem. Although its definition of terrorism draws on a model developed by a former United Nations Special Rapporteur, the Human Rights Commission of Sri Lanka has warned that the definition of terrorism extends beyond the model and could bring legitimate political protest, trade union action and civil disobedience within the scope of counter-terrorism legislation. Its concerns also include prolonged detention, inadequate judicial oversight and restrictions on access to legal counsel. These are objections that go to the heart of the relationship between the citizen and the state. The government cannot credibly promise to protect democratic freedoms while creating powers that could be used to restrict them. It is necessary for the government to reassess the draft through transparent consultation and revise provisions that could criminalise legitimate dissent.

The Prevention of Organised Crimes Bill raises similar concerns. It is presented as giving effect to the United Nations Convention against Transnational Organised Crime, which Sri Lanka ratified in 2006. The Centre for Policy Alternatives (CPA) has argued that the convention does not require many of the bill’s provisions. The proposed law extends to a broad range of offences, permits detention orders lasting up to a year, makes confessions to police admissible for purposes of legal evidence, and introduces extensive surveillance powers. A law intended to dismantle criminal networks should not create a parallel system of exceptional powers that could be applied far beyond organised crime. Nor should safeguards developed through years of experience with abuses under the Prevention of Terrorism Act be weakened through legislation bearing a different name. The government should review whether or not existing laws could be used effectively to control these crimes or whether each exceptional power is necessary.

Civil Society

The proposed NGO Registration and Supervision Bill presents another test of the government’s intentions. The government may reasonably seek transparency in the finances of organisations receiving public or foreign funds, including measures to prevent money laundering and terrorist financing. It seeks to justify its overreach on the grounds of meeting the internationally mandated requirements of the Financial Action Task Force (FATF) for the Asia-Pacific region. But these objectives do not justify placing civil society and NGOs under excessive administrative control when even the FATF ranks them as low to medium risks. The draft bill would require registration and renewal, impose extensive obligations on organisations and empower authorities to suspend or deregister them on broadly framed grounds. It is important to redraft provisions that confer excessive discretion over registration, renewal, suspension and deregistration of NGOs.

Among the concerns raised by United Nations human rights special rapporteurs with regard to the draft NGO law are provisions requiring organisations to align with government policies and restrictions that could affect advocacy, dissent and freedom of association. The implications extend well beyond organisations that engage directly with the government. Community groups, human rights organisations, independent researchers and organisations working on reconciliation or accountability could find their activities constrained by uncertainty over how these provisions might be interpreted. Organisations that criticise government policies are not thereby working against the country. Their freedom to do so is part of what distinguishes a democracy from a system in which the government determines which opinions and activities are acceptable.

The government has generated considerable public goodwill through its pursuit of corruption and criminality. It should not assume that this goodwill gives it an unlimited mandate to strengthen the coercive powers of the state. The NPP knows from its own history that governments can treat dissent as a threat and use the machinery of the state against their opponents. There is still time to correct the drafts through transparent public consultation, narrow definitions of offences, meaningful judicial control over detention and surveillance, and effective remedies against arbitrary decisions. A government that pursues corruption while weakening safeguards against state abuse risks undermining its own achievements. Besides bringing to light the abuse of power by previous governments, the NPP government needs to build a system in which no future government can abuse power in the belief they can get away with it.

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Quality assurance without quality enhancement: The irony of university QA

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By Ramya Kumar

According to the Quality Assurance Council (QAC) of the University Grants Commission (UGC), quality assurance (QA) refers to “the means (i.e. the policies, attitudes, actions, procedures, etc.), by which an institution can guarantee with confidence and certainty, that the standards and quality of its educational provision are being maintained and enhanced”.

An expansive structure has been in place since 2005 to govern and implement QA processes within the state university system. The QAC is the focal point at the UGC that implements external reviews of state universities and institutes. Each university has its own Centre for Quality Assurance (CQA) tasked with performing QA in line with QAC directives. Faculties, in turn, have Internal Quality Assurance Cells (IQAC) performing their own QA; they are answerable to the CQA.

The big question is whether this all-encompassing top-down QA system, that in many ways undermines the internal dynamics of university governance, actually supports universities to enhance the quality of education. This article highlights some concerns.

Top-down check-box activities

The QAC conducts external reviews of universities and degree programmes. A review team appointed by the UGC (who may or may not have experience in the institution/programme in question) examines the self-evaluation report submitted by the said institution/programme. The team then conducts a site visit to verify the claims made in the university’s self-evaluation report, clarify issues identified during the desk review, and examine how QA procedures operate in practice. The team holds meetings with the university administration, members of the Council and Senate, Deans, Heads of Departments, academic and non-academic staff, students, and others. Following the visit, a draft report is submitted to the relevant institution/programme for comment before final publication. The reviewed institution/programme then prepares and publishes an action plan addressing the recommendations, with subsequent monitoring of progress.

There are some worthy QA initiatives under implementation, such as improving facilities for students with disabilities and strengthening mechanisms to address sexual- and gender-based violence. However, for the most part, QA activities have little to do with improving the quality of education. They are mostly preoccupied with monitoring faculty and department websites, digital transformation, student feedback, subject evaluation, course evaluation, peer evaluation, and, more recently, staff appraisal. These activities, which consume an inordinate amount of time—so precious at understaffed universities—have become check-box activities completed to generate evidence for the next review. Below is an excerpt of a conversation between two academics (1 and 2) that conveys how QA plays out at universities (reproduced with permission).

1: … .it’s like social media you know, like posting things on Facebook or twitter or Instagram. When people do a lot of social media, everything they do, they do thinking, “okay I’m going to post it in this way… this I have to put on my Instagram.” QA is a little like that… everything is considered in light of, “ah we can use this for the review, as evidence… for example very recently we were encouraged to have all the things that we do in our department in the faculty newsletter so then they can put in the review. Every little thing has to be noted down….

2: And with pictures and all…

1: At the very least it has to be written so that you have written evidence .. you can’t be doing something for the sake of doing something or because it is good for the department … and sometimes people tell me “oh yea that’s a good idea we can fit that under this x, y section of the review..”

2: Yea, and nobody really thinks about the actual outcome… whether it’s actually helping anyone..

1: I also find that a lot of the words that we used in different ways have now been co-opted to the QA discourse ..including quality.. I can’t actually say what I want as an “outcome”, for example, that the outcome of this workshop is that my students “think about” … then I am told “ah but no that’s not one of the Bloom’s taxonomy words, “think about”.…

2: And the worst part is these medical and agriculture people, these types of people go around spreading it like some kind of gospel!

1: Yea, this cookie cutter way of doing things, they think is the height of innovativeness or creativity, when actually it is so mundane … for me the most awful thing about it is like some fungus of mundanity has taken over through QA reviews.

2: yea, when you say QA, my mind closes off immediately and I stop listening…

Auditing everything but power

QA leaves out crucial aspects of university governance. For instance, there is no review or assessment of the “quality” of university administrations under Criterion 1 or the integrity of procedures governing the promotion of academic staff under Criterion 6 of the institutional reviews.

The majority in the Council—the university’s executive and governing body, which is responsible for selecting the Vice-Chancellor (VC)—are appointed in ad hoc fashion. Apart from the Ex-Officio members in the Council (VC, Deans, etc.), and the two members elected by the Senate, the remainder are appointed by the UGC with no formal consultation or vetting procedure. The VC appointment process described in UGC Circular No. 03/2023 exemplifies how an ostensibly technical process can become entangled in political sycophancy. The Registrar invites applications for the position of VC through advertisement. Applicants must submit a curriculum vitae, a statement of vision for the university and supporting documents. The University Council appoints a three-member Search Committee of senior academics to encourage “eminent persons” to apply, while the UGC appoints a former VC from another university to “observe” the selection process.

A Special Meeting of the University Council is convened. Candidates are interviewed and must make a presentation to the Council Members, followed by questions. Each Council member “gives marks” for seven prescribed criteria: strategic focus (20%), effective leadership (20%), holistic thinking/conceptual skills (10%), academic and research excellence (15%), personal integrity (10%), professional communication (10%) and managerial competence (15%). Marks are averaged, and the Council recommends three candidates to the UGC in rank order. The UGC-appointed observer separately submits a confidential report on the selection process.

This procedure is expected to guarantee quality, but does it? Applications are submitted to the Council Members, who have been appointed on questionable bases, and who are expected to review the applications and give scores, based on objective assessments. But, in reality, most Council Members are manipulated by VC candidates, who often have personal ties with them. The UGC-appointed observer usually has no genuine interest in the outcome. And there is no way for anyone to actually question the Council’s decision once it is made. Although the highest-ranked candidate may ultimately be appointed, the selection remains a political decision made by the President, who retains the discretion to appoint any one of the three.

External reviews also do not look into the promotions of academic staff, except to scrutinise whether there are policies and procedures in place to govern promotion. Academic staff may apply for promotion to Professor once they satisfy the prescribed eligibility requirements, which typically include the period of service, academic qualifications, research and publication achievements, teaching experience, and contributions to the university and wider community. Applications are evaluated against specified criteria, with research output and academic contributions assessed through documentary evidence and expert evaluation. Under the UGC’s scheme for Professors, two experts from outside the applicant’s institution assess specified aspects of research and knowledge dissemination. Again, beneath this technical process, which is externally evaluated, lies a problematic points-based scheme that can be manipulated and abused with impunity.

Rethinking university QA

Like the VC election process and the schemes of promotion for academic staff, QA reviews are open to manipulation. Before a review, there is a chaotic rush to complete evidence gathering and reporting. Academics leave all other work aside, including at times their teaching, to focus on completing documentation and preparing reports. The standardised criteria in the review manuals and scoring sheets often do not reflect differences in disciplines and institutional contexts. But this does not really matter because any serious problems experienced by institutions or programmes are hastily brushed under the carpet to conceal any evidence that could taint the review. The goal is to obtain an A or at least a B grade at whatever cost.

QA may result in positive change if it moves beyond top-down check-box activities towards internally designed and owned processes encompassing all aspects of university governance, led by departments and faculties, and supported by adequate resources. The current QA system needs to be dismantled and replaced by procedures that are accountable, not to the UGC, but to our students and the communities we serve.

(Ramya Kumar is attached to the Department of Community and Family Medicine, Faculty of Medicine, University of Jaffna)

. Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies.

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Down Memory Lane — the Grand 20th Edition!

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Down Memory Lane: Ready to sing again

Yes, Down Memory Lane, the beloved Sing-Along concert series that first struck a chord, way back in 1997, returns for its landmark 20th edition this Saturday, 17th October, at the beautiful Bolgoda Grand Resort, Moratuwa town centre.

Having celebrated its glorious 25th anniversary with the show in 2023, this milestone 20th concert promises to be even more special.

The organisers, the ever-popular Moratuwa Arts Forum, are pulling out all the stops to present yet another unforgettable evening, brimming with camaraderie, fellowship, and pure nostalgia.

Get ready for two-and-a-half hours of non-stop singing as veteran vocalists, from the Moratuwa Arts Forum, will take the stage to lead and inspire the happy audience to sing, sing and sing to their hearts’ content.

The repertoire? Absolutely magical, according to the organisers.

Veteran Arun Dias Bandaranaike: Will handle the evening’s proceedings / Priya Peiris: Event Conceptor

Around 40 golden oldies — from timeless English vintage evergreens and hits from the 50s to the 90s, to toe-tapping calypsos, soulful American plantation melodies, rousing cowboy and Dixieland favourites, aa well as cherished Sinhala standards. All to be sung with much gusto!

This year’s dedicated organising committee comprises Brian Coorey (Chairman), Priya Peiris (Event Conceptor), Hiran Fernando, Suranga Fernando, Viranjan Perera, Hemka Fernando and Neelesh Silva. Guidance and support comes from Moratuwa Arts Forum President Sarana Guneratne and Secretary Chandani Silva.

Adding his signature charm to the evening, as Master of Ceremonies, will be the veteran Arun Dias Bandaranaike.

Don’t miss this landmark celebration of music and memories!

For further details, contact Hiran Fernando on 0772636446 or WhatsApp 0783636446.

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